Tinian Approves First U.S. Public Stablecoin, MUSD, on eCash Blockchain

Tinian, a small island in the U.S. Pacific territory of the Northern Mariana Islands, has made a significant move in the cryptocurrency landscape by becoming the first public entity in the United States to approve and prepare the issuance of a USD-backed stablecoin. The stablecoin, named the Marianas US Dollar (MUSD), is backed by cash and U.S. Treasuries and will be launched on the eCash blockchain. This decision follows a successful vote by the Northern Mariana Islands House of Representatives to override a veto from the territory’s governor.

The new legislation not only authorizes the issuance of the MUSD stablecoin but also allows Tinian to issue licenses to internet casinos. This strategic move links blockchain technology with tourism and online gaming, aiming to diversify the island's economy. Tinian, with a population of just over 2,000, is seeking new revenue streams as its economy struggles.

The bill was initially vetoed by Governor Arnold Palacios in April, citing legal concerns and a lack of enforcement measures to prevent illegal gambling. However, the territory’s nine-member Senate voted 7-1 to override the veto, and days later, the 20-member House followed with a 14-2 vote, clearing the two-thirds majority needed to push the bill through. Supporters of the bill argue that it could bring in much-needed revenue without burdening the government.

Republican Representative Patrick San Nicolas, a member of the Tinian delegation, emphasized the potential benefits of the legislation. “We need this legislation to unlock our potential,” he said. “This bill does not depend on tourists or federal subsidies—it builds a digital industry generating revenue from a licensed jurisdiction.” The Tinian government has partnered with Marianas Rai Corporation as its exclusive technology provider for the stablecoin infrastructure. The firm’s co-founder, Vin Armani, urged lawmakers to reverse the veto ahead of the vote, claiming the bill could “attract billions of dollars of investment and tax revenue” to the island.

Despite the support, there were concerns raised by Independent Representative Marissa Flores over the bill’s connection to online gambling. “Every time we talk about casinos, there’s always some kind of bitter pill to swallow,” she said. “It is true, we are in dire need of money, but what I don’t like is when we are desperate… Every time we’re desperate, it always seems that we come back to casinos.”

Governor Palacios maintained his objections, warning that the measure could be unconstitutional and lack proper safeguards. However, with both chambers of the legislature in favor, Tinian now leads the way as the first U.S. public entity to authorize and prepare to issue its own dollar-backed digital currency. The stablecoin is expected to go into effect before July, marking a significant step in the island's economic diversification efforts.

While Tinian leads with the first U.S. public stablecoin on the eCash Network, another state, Wyoming, is moving steadily with its own state-backed initiative. On May 12, the Wyoming Stable Token Commission announced a partnership with Inca Digital Federal LLC to strengthen oversight and security for the Wyoming Stable Token (WYST), expected to launch soon. WYST will be fully backed by cash, U.S. Treasuries, and repurchase agreements, and is designed to be redeemable 1:1 with the U.S. dollar. The commission is currently testing the token across Ethereum, Solana, and Avalanche networks.

Meanwhile, at the federal level, stablecoin regulation remains stalled. Legislative efforts like the GENIUS Act and the STABLE Act have lost momentum, largely due to political rifts over Donald Trump’s increasing involvement in crypto ventures. This regulatory gridlock highlights the importance of local initiatives like Tinian's in driving innovation and economic growth in the cryptocurrency space.